Common use of Schedule Incentive Clause in Contracts

Schedule Incentive. (a) Accelerated physical completion of the Rocky Flats Closure Project is a strategic objective of the DOE and has significant benefits to the Government. (b) The Target Schedule Date for physical completion of this contract is set forth in subparagraph (c) below. As set forth in subparagraph (c) below, physical completion on Target Schedule Date will result in $15 million Schedule Incentive Fee. Physical completion earlier than this date will result in $5 million additional fee payment in a uniform daily amount, up to a maximum of the Earliest Schedule date dollar value. For each day that physical completion is later than the Target Schedule Date, the acceleration payment to Contractor will be reduced a uniform daily amount up to a maximum of the Latest Schedule date dollar value, as more fully set forth in the Schedule Incentive graph, Section J, Attachment H. (c) Schedule Incentive Fees will be earned in accordance with the following: Date Incentive Fee ------------------ ------------- Earliest Schedule March 31, 2006 $20,000,000 ----------- Target Schedule December 15, 2006 $15,000,000 ----------- Zero Point March 31, 2007 $ 0 ----------- Latest Schedule March 31, 2008 $20,000,000 Reduction ----------- This is graphically depicted in Section J, Attachment H. (d) In no event shall the schedule incentive fee payable under subparagraphs (b) and (c) plus the incentive fee payable in accordance with Clause I.23 exceed $450,000,000. Any fee reduction for late schedule set forth in subparagraphs (b) and (c) shall be deducted from the incentive fee payable under Clause I.